UPDATE

PEOPLE MOVES POST-TRADE

A handful of major European
banks are significantly reducing
their exposures to client clearing of
derivatives, as regulatory pressures
force banks to rethink the business.

According to FCM figures from
the US Commodity Futures Trading Commission (CFTC), banks
including Deutsche Bank, Barclays
and Credit Suisse have dramatically reduced the amount of client
segregated assets they hold for
clearing.

Deutsche Bank, which at the
beginning of 2014 held over $12.5
billion for its listed derivatives
clearing business and was one of
the top clearing banks in the US at
the time, has seen its client segregated assets drop to just over $3.1
billion as of November 2016.

“What we have seen is that there
been some unwinding of positions.
When we look at CFTC statistics….
notably one or two of the European
clearing brokers have delever-aged,” says Jamie Gavin, head of
OTC clearing for Europe and Asia,
Societe Generale.

“We think that is due to sensitivity over certain LDI strategies
where they have been very bal-ance-sheet intensive.”

European banksdownsizing rolein client clearing The appointments comes months after the formationof a new global trading team with a key focus on elec-tronic trading.

JP Morgan has poached two of
Deutsche Bank’s senior trading
technologists, as it looks to further
strengthen its electronic trading
unit.

The US bank has hired David
Winig as global head of market
data services and electronic trading
infrastructure, and Leon Sirota
within its fixed income, currencies
and commodities (FICC) technology team in New York.

Sirota was previously Deutsche
Bank’s global head of algorithmic
trading technology for over six
years, before departing the bank in
January.

Meanwhile, Winig re-joins JPMorgan after serving almost eightyears at Deutsche Bank, where hepreviously served as the CIO ofthe corporate banking and secu-rities (CB&S) unit’s core tradingtechnology.

The appointments come months
after David Hudson, JP Morgan’s head of markets execution,
announced a new global trading
team with a key focus on electronic
trading.

Winig previously served as a
managing principal director for
Bear Stearns, before it became part
of JP Morgan at the height of the
financial crisis.

Sirota also served as global head
of algorithmic trading development
at ITG for two years.

The loss of its two senior technologists is the latest blow for
Deutsche Bank’s US trading team,
after its co-head of electronic
trading for the Americas, John
Cogman, departed last May to join
high frequency trading firm Tower
Research Capital.

JP Morgan boosts electronic tradingunit with ex-Deutsche tech heads

Capital pressures have
seen some European
clearing banks unwinding
positions and retreating
from the business.